Olympia picks general contractor for new $450 million Detroit Red Wings arena

DETROIT, MI – Olympia Development of Michigan has picked Barton Malow-Hunt-White as the general contractor for a $450 million, 18,000-seat arena the company plans to build for the Detroit Red Wings in the Lower Cass Corridor.

Olympia, the development arm of Ilitch Holdings, which also owns the Detroit Tigers and the Fox Theatre, submitted its pick to Detroit’s Downtown Development Authority for review. The DDA is scheduled to vote on the recommendation Wednesday at 3 p.m.

The staff of Barton Malow-Hunt-White, a combination of two Metro Detroit-based companies and an Indianapolis firm, has had its hand in projects such as Ford Field, Comerica Park and the expansion of Michigan Football Stadium in Ann Arbor. Hunt Construction Group, the firm based in Indianapolis, oversaw construction of the Marlins Park baseball field in Miami, the Amway Center in Orlando and the Barclays Center Brooklyn.

According to Olympia, construction of the 650,000-square-foot arena in Detroit will create about 5,500 jobs. It’s part of a larger, $650 million project that encompasses a 45-block area between Midtown and downtown, where the company said it is developing an entertainment district with mixed-use developments.

The project was revealed in greater detail last June at a DDA meeting, as the city body staffed by the non-profit, quasi-government Detroit Economic Growth Corporation needed to expand its district because Olympia seeks DDA money to help finance the project.

The entire project will create about 8,300 jobs and have about a $1.8 billion economic impact, according to Olympia. As the proposed development made its way through City Council, several council members said they would sign off on it so long as Detroiters would reap employment from it.

Olympia said more than half of the construction jobs for the new arena will be filled by Detroit residents, with more than $100 million paid to Detroit workers. City Council has approved property transfers and other measures allowing the project to move forward, despite concern for the use of public money.

The arena and accompanying entertainment district would be funded with a mix of $365.5 million in private investment and an estimated public investment of $284.5 million.

Olympia would contribute $11.5 million annually for 30 years toward the construction debt for the arena. The DDA would contribute $2 million a year. And another $12.8 to $15 million a year would come from property taxes paid within the city's downtown development district.

It’s not immediately clear when construction will begin, but Olympia says the arena will be ready for the 2016 NHL hockey season. When the Detroit Red Wings vacate the Joe Louis Arena, their current home ice, the city will demolish the arena with the intention of redeveloping the riverfront land. On that front, the state has agreed to lend the city $6 million up front to help with demolition costs. The city would have to repay the money through tax increment financing with a new development at the riverfront site near the Cobo Center.

David Muller is the business reporter for MLive Media Group in Detroit. Email him at dmuller@mlive.com or follow him on Twitter or Facebook.